Is This Accountant’s Fee Reasonable for Dissolving an LLC?
Hi everyone, I’m hoping to get some insights on this matter:
I work for a company based outside the US, and my boss opened an LLC in Florida to sell products on Amazon. Unfortunately, things didn’t go as planned, and we ended up with only losses, leading him to decide to dissolve the LLC.
Now, our accountant is charging $5,000 for the dissolution, which seems quite steep given that the company barely generated any revenue and was mostly in the red.
I’ve done some research and found out about the necessary steps to dissolve the company, such as filing Form 1065 and 8804, as well as e-filing with the Florida Department of State.
I’m just trying to understand if $5,000 is a typical fee for closing an unprofitable company after just one year of operation.
Additionally, if this amount is indeed excessive, do we have the option to hire a different accountant in the US, or are we obligated to continue with this one since he was the original provider when the company was set up?
Thanks for your help!
One response
It sounds like you’re dealing with a frustrating situation. $5,000 does seem like a steep price for dissolving an LLC, especially one that didn’t generate significant income. The typical cost for dissolving an LLC can vary widely based on factors like complexity and state fees, but it usually ranges from a few hundred to a couple thousand dollars.
The accountant may be charging for their time to prepare the necessary paperwork and file the appropriate forms, but it’s worth asking for a breakdown of the charges to see what exactly you’re paying for.
Regarding your question about switching accountants, you’re not locked into just one. You have the option to consult with other accountants or firms who can assist with the dissolution of the LLC. It’s always good to get a second opinion, and you might find someone who offers more competitive pricing or a better understanding of your specific situation.
If you do decide to consult another accountant, ensure they are familiar with Florida’s regulations since they may differ from other states. Good luck!